DEBT FINANCING. Asian stocks fall, dollar gains in Europe woes

Singapore (Reuters)-Asian stocks slid on Monday and the euro fell to a low-10 years against the yen, after the resignation of a member of the Board of Governors German European Central Bank launch even more doubts about the capacity of the region to cope with the worsening of the sovereign debt crisis.
Copper and oil prices fell and the dollar gained, in General, as worries about the eurozone woes, combined with fears about flagging world growth to ensure no let up in the gloom that has dominated global markets for most of the last six weeks.
"People are very nervous about Greece and other countries in Europe, so that's why investors are fleeing to the dollar," said Tetsu Emori, Fund Manager based in Tokyo Astmax co. Ltd. "risk aversion".
Resignation of Juergen Stark Governing Board highlighted the internal divisions over its purchase program titles--one of the central bank's main weapons in the fight against the debt crisis, forcing down income of the country under pressure from the bond markets.
Japan's Nikkei fell 2.1% N225. to a low of six months, while the broader index of MSCI Asia Pacific shares outside of Japan fell 2.6% and Japan .miapj0000pus. Futures Index U.S. traded in Asia fell 0.9 percent.
"For the rest of the week, developments in the debt problems of the eurozone and movements in the euro probably will set the direction of the market," said Yutaka Miura, a senior technical analyst at Mizuho Securities in Tokyo.
Wall Street shares fell on Friday, when the news broke Stark, with the index S & P 500.SPX falling 2.7% and European shares also fell more than 2%. .A SEA
Lipper Fund controller data, a service of Thomson Reuters, showed that a brief flirtation with stocks at the end of August waned, with less than a net $ 600 million that flows to us capital funds for the week ending 7 September, compared with a net flow of $ 6.3 billion in the previous week.
Index of MSCI All country-MIWD00000PUS. now 19% less than the whole high of 2011 in may, is not far the decline of 20 percent which is the definition of the golden rule of a bear market.
The image of the flow of Fund for emerging Asian equity markets was mixed. Citigroup analysts said in a note that China and Indonesia had seen modest net entries for the week of 7 September. The major outputs were of regional funds and cyclical markets of South Korea and Taiwan.
GREEK DEFAULT
Adding to the difficulties of the euro zone, major French banks were preparing to credit rating downgrades on worries about its exposure to sovereign debt, German politicians and senior centre-right coalition of Chancellor Angela Merkel started talking openly about a Greek default.
A growing number of policymakers, as well as market economists, believe it is only a matter of time before Greece, that keeps getting back on their budgetary targets after two bailouts I/IMF, will have as default.
"The Outlook for Greece are almost completely unknown. Support for the country seems to be stirring. The market is starting to find that the worst could happen, "said Katsunori Kitakura, chief croupier Chuo Mitsui Trust and banking.
The euro fell as low as $ 1.3550, its worst since the end of February and later negotiated approximately $ $1,3570, after a sharp slide at the end of last week. Against the yen, the single currency fell as much as about 104.90, its lowest since 2001.
Meanwhile, the dollar index.DXY, which monitors the dollar against a basket of major currencies, rose about 0.4% to near a high set one month on Friday.
U.S. oil dropped $ 85.96 $1,28 a barrel and Brent facilitated 89 cents to $111,77 that copper fell 0.9% at $ 8, 743.25 ton.
Both commodities are sensitive to the expectations of global industrial growth and demand here.
Currencies of major commodities producers were, in turn, under pressure, with the Australian dollar falling more than 1 percent to a three week low around $ 1.0363.
Gold, which has been striking a succession of records due to its traditional appeal as a safe haven at times of market volatility, fell 0.5 percent to about $ 1,848 the Jaguar as a stronger dollar has become more expensive for holders of other currencies.
Gold priced in euros, however, reached a record 373.30, 1 ounce.
Japanese Government securities controlled gains in u.s. Treasury bonds and German bunds as investors sought safer perceived public debt, with the benchmark 10-year JGB yield dropping below 1%.

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